Industry/Sector: Medical Device Manufacturing

Deal Type: M&A – Sell Side Advisory

FourBridges Team: Dewey Hammond

Client Profile: Machining Technology Group (MTG) provided development, engineering, rapid prototyping and manufacturing of specialized instruments for the world’s major orthopedic medical device companies.

Client Objective: MTG’s owners sought personal liquidity and diversification. They also sought to remain well-positioned to meet the demands of the rapidly growing market for spinal devices.

The Challenge: MTG faced over 90% customer concentration and a significant need for capital expenditures to increase capacity.

The Process: FourBridges professionals designed a competitive marketing process targeting private equity firms that fit MTG’s profile and its owners’ objectives. Recognizing recent industry developments, FourBridges professionals recommended including a few select strategic buyers to the process.

The Result: MTG was sold to strategic buyer Accellent, Inc. The transaction value of over $50 million represented a multiple of 7.6x projected EBITDA. In addition to receiving cash and Accellent preferred stock, the owners gained key executive positions at Accellent. Four days after closing, Accellent was acquired by Kohlberg Kravis Roberts & Co. in a transaction that increased the value of MTG’s owners’ preferred stock by almost 50%.

Testimonial: “Our investment banker’s advice and negotiation skills - from deal structure to due diligence to employment contracts - helped us achieve a value far beyond our original expectations.”-     Gary Stavrum, President and Co-Founder

FourBridges Capital Advisors is a middle market investment bank providing sell-side, buy-side, capital raising, restructuring, and strategic advisory services primarily to closely-held and family-owned businesses. FourBridges is based in Chattanooga, Tennessee and serves clients across the Southeast, including Atlanta, Nashville, Birmingham, Memphis, Knoxville, and Huntsville.

Past performance is no guarantee of future results, and there can be no guarantee that these results will be duplicated in the future.  Any testimonials presented herein may not be representative of the experience of other clients.